About Us & Our Service
Evergreen Development, LLC has identified for review and acquisition several major underground mining development projects in the Central Appalachian coal basin that were previously unknown and overlooked by the industry. The notion that there is a lack of coal reserves in the region, well suited for major mine development, is false. The opportunity exists for forward looking investors to partner up with Evergreen to develop the next generation of major underground mine projects. We are not running out of coal in the east.
Evergreen was founded by Ed Rehbein, Geologist, L. A. Gates, owner of L. A. Gates Company, and Steve Capelli, owner of Capelli Mining Engineering and President of Gates Consultants. Pete Lilly has recently become a member/owner and advisor to the company. Evergreen specializes in identifying previously unknown and overlooked coal reserves and preparing the reserves for development. The knowledge and expertise of the Evergreen group is making these reserves now available for acquisition and development.
Evergreen has identified more than a dozen virgin underground coal reserve areas, containing over three billion, clean, in-place tons of coal on approximately 300,000 acres of mineral land (see reserve summary sheet and reserve maps). Most, but not all, of the reserves are located in nontraditional coal-producing counties in central West Virginia and southwest Pennsylvania; most areas have river and/or rail access.
It is our belief that coal will continue to be one of our country's greatest resources. Further, we believe that coal will have to be a major part of the energy mix as we move toward energy independence and to fulfill the newly expanded export opportunities. Evergreen believes that future mining in the Central Appalachian coal basin will not be confined to thinner seams in heavily worked areas. Instead, large, thick, untapped resources remain to be developed. With the newly found reserves, Evergreen hopes to keep Central Appalachian coal production at a high level for many years to come.
Working with information gathered through 30 years of painstaking geologic evaluation, Evergreen has identified large, and previously unknown, coal reserves. Along with identifying these reserve areas, Evergreen also conducts exploration programs, interprets geologic data, does legal property research, and acquires mineral leases, thus consolidating and preparing the reserves for development. Evergreen has conducted limited exploration work at the Keystone, Goldenrod, Omega and Pinewood prospects.
Evergreen Development has been in business since 2007. Utilizing geologic techniques of Kerr-McGee and Amvest Minerals as a foundation, we have taken their method of identifying reserves that are unknown largely to the mining community, expanded this research and identified an even greater number of reserves. At this point, we have over a dozen prospects available for contract, of which several are metallurgic quality.
As an example, the Keystone prospect is our most advanced remaining metallurgic prospect. It is located on 30,000 acres of mineral in Western Pennsylvania and contains up to 212 million in-place clean tons in the Upper Freeport seam and 46 million in-place clean tons in the Kittanning seam. The average access depth to the Upper Freeport seam is around 500-600 feet. This coal seam will average 56 inches with an average clean coal height of 52 inches. The reserve reliability of the Upper Freeport prospect area is 22 percent measured, 62 percent indicated and 16 percent inferred. Rail access is available with river access about four miles away. Evergreen core drilled the Upper Freeport seam (Core hole GR-11) and found the following quality at a 1.60 sg float:
Ash Dry: 7.49%
Sul Dry: 0.94%
VM Dry: 30.7%
Max. Fluidity, ddpm: 30,000
Mean Max Reflectance, %: 1.10
Largely, the mineral tracts have never been leased or consolidated and will average less than 100 acres per tract. In our previous title work, we have not found anyone ahead of us leasing or purchasing these reserves. Of course, this is a dynamic situation and each prospect will need to be updated before any exploration/leasing should take place.
Evergreen has executed several Confidentially Non-Competes (CA) and we are discussing all the coal prospects with other potential clients/partners. An executed CA will be needed before Evergreen can make a formal presentation of identifying the exact location of the reserve, nearby infrastructure and geologic information.
Evergreen is open to a broad range of business arrangements and some of the options are discussed below:
Option 1 (Joint Venture)
This option is open to very creative thinking. Each company has their own specific needs and wants, so we are open to consider many
options here. Two examples of joint ventures we have considered or have put into practice include the following:
1. For a 50-50 equity partnership, the client/partner will put up the cash for the exploration and leasing effort and, as soon as the reserve is proven and the mineral leases are under control, we would transfer/sell the mineral control to the client or a third party. Exploration and leasing costs are estimated to be between $0.02 to $0.03 per in-place clean ton.
2. For an additional override (greater than Option 2 override), Evergreen will complete the exploration and leasing effort for the client in a specified time and under an approved cost budget. Exploration and leasing costs are estimated to be between $0.02 to $0.03 per in-place clean ton.
Option 2 (Turnkey)
We have found that some clients prefer this method, especially those that are not staffed sufficiently to manage the exploration, permitting, title work, right of entry work, and leasing effort. Under this scenario, Evergreen will prepare a budget for client approval and operate under the approved budget. Evergreen will form a new company, Newco, and conduct all activity in Newco and, at an agreed upon trigger date, transfer/sale Newco to the client, including all geologic data, permits, and leases .. Evergreen will be reimbursed for all expenses during the exploration and leasing period (usually around two years total), plus be paid an acreage fee of $0.02 per in-place clean ton as mineral tracts are put under lease, and a one percent override to be paid after production has begun. Excluding the override, the expected total cost to the client to gain control of the targeted reserve area, including the Evergreen fees, is expected to be under $0.05 per in-place clean ton. This option provides privacy of the client's involvement, as some prefer.